Search ForexCrunch

The Global Times is reporting that  China vowed on Thursday to take necessary countermeasures against a US decision to impose 10 percent tariffs on $300 billion worth of Chinese goods starting on September 1.

The US decision has severely deviated from the consensus reached by the top leaders of the two countries during the  G20  Summit in June as well as the right path of solving differences, the Customs Tariff Commission of the State Council, China’s cabinet, said in a statement on Thursday.

China is forced to take necessary countermeasures, said the commission.

The next round of high-level trade talks between China and the US will be held in the US in September, MOFCOM spokesperson Gao Feng said in a press conference on August 1.

FX implications:

AUD, JPY, Yuan and EM-Fx are the most correlated currencies to trade headlines and we can expect plenty of downside in them if there are no solutions made in September.